Bitcoin slid down toward $85,000 today. Wall Street jitters took their toll. This pulled altcoins along with it. The day was marked by thin trading volumes.
The Fear & Greed Index stagnated at 17. This signals extreme fear among investors. Despite this, institutions are gradually accumulating Bitcoin. They remain undeterred by miner sell-offs. Additionally, they ignore significant distributions among Asian whales.
Meanwhile, today’s U.S. inflation data hangs over the market. It’s poised to trigger volatility.
Bitcoin Holds Fragile Bullish Structure
Earlier today, Bitcoin briefly climbed to $90,000. It rode a wave of strength from U.S. equity markets. However, it reversed course. Now, it’s settling around $86,455. This represents a decline of 0.93% over the past 24 hours. The drop occurred amid broad market malaise.
On-chain indicators reveal something important. Miners and exchanges are offloading Bitcoin. Binance, particularly, is active. They’re moving Bitcoin into the hands of institutions. This happens via platforms like Coinbase. Notably, price premiums remain intact there.
A report from KuCoin highlights concerning trends. First, miner reserves are dwindling. Second, there’s an 8% global hashrate drop. This is a ripple effect. Specifically, it stems from crackdowns in Xinjiang, China.
Matt Hougan, Bitwise CIO, believes something significant. Exchange-traded funds (ETFs) might surpass annual Bitcoin supply by 2026. This hints at potential highs for Ethereum and Solana.
The technical outlook depicts an inverse cup-and-handle formation. With $160 million in liquidations unsettling bulls, a critical support level matters. Specifically, $80,537 is vital for maintaining this bullish narrative.
XRP Tests Supports as New Ramps Emerge
XRP struggled to maintain momentum. It slipped to $1.86. This represents a decline of 2.67%. Currently, it hovers on a key support level. With the RSI exiting oversold territory, a rebound seems plausible.
Some bullish activity is prompted by DWP’s algorithmic trading for IRAs. However, a drop below $2 could raise red flags. This forces some traders to pair it with cloud mining for additional protection.
The CLARITY Act could set XRP at a decisive crossroads. Meanwhile, SolStaking offers a way to earn. This works while waiting for clearer market direction.
Meme Coins Falter, Fartcoin Leads Solana Losses
Solana-based meme coins faced intense selling pressure. Fartcoin plunged 20% in 24 hours. It fell to under $0.30. This represents 68% off its 12-month highs.
This sharp decline coincided with something notable. Trading volume surged 28%. This equates to 43% of its market cap.
Chart patterns show a rejection at resistance levels. Additionally, they show drift toward potential support. Bearish sentiment spikes fears of further declines. Predictions swing widely. Some forecast a short-term drop to $0.21. Others average $1.30 by 2025.
Currently, Fartcoin trades at $0.2872. Volume stands at $142 million. The token has seen significant whale buying. However, overall market momentum remains bearish. Negative SMAs confirm this.
In more optimistic news, Dogecoin appears to be reversing trend. This follows aggressive accumulation by whales. Additionally, exchange balances dipped.
Regulatory Green Lights and Institutional Bets
The Federal Reserve has made a significant move. It lifted its 2023 restrictions on cryptocurrencies. Now, banks can engage with digital assets. This marks a significant victory after years of hesitancy.
Meanwhile, Canary is refiling its staked INJ S-1 with the SEC. Their aim is an ETF milestone.
In the UK, there’s talk of regulating crypto by 2027. The SEC seeks public comments on exchange trading.
Key Developments
DTCC pilot: The U.S. Treasury is testing an on-chain model. This happens via the Canton Network. Consequently, it boosted the privacy token CC by 8.5%. Additionally, it lifted peers such as FHE and NIGHT.
ETFs surge: Hong Kong’s spot VA ETFs hit a remarkable $920 million cap. This marks a 217% QoQ increase. Valour has also received B3 approval. This is for a Solana ETP in Brazil.
Funds flow: Moon Pursuit Capital has launched a $100 million crypto fund. This signals a return to venture capital interest. Specifically, in infrastructure and AI-crypto sectors.
Layer 1s and DeFi Heat Up
Ethereum is eyeing $2,500. It’s experiencing an ABCD correction. Currently, it’s down 3.71% at $2,834.
Meanwhile, Solana appears to be tightening. It’s within a triangle pattern at $123.76. This raises concerns of an impending breakout.
Avalanche is pushing purpose-built chains. Spark’s total value locked reached $210 million this week. This disregards recent speculation.
BNB holds steady at $830. This persists despite facing bearish pressure. Meanwhile, Monero’s parabolic trend nears its all-time high. It shows an impressive 80% rally.
Superform’s $4.7 million UP sale exceeded expectations. SuperVaults v2 launched simultaneously. This indicates healthy investor sentiment across the board.
Ondo and LayerZero have also achieved something notable. They successfully bridged tokenized securities across chains.
Tokenized Assets and Stablecoins Gain Traction
Fragmented global real-world asset (RWA) markets face inefficiencies. They’re wasting between $600 million and $1.3 billion yearly. This stems from cross-chain friction.
B3 is currently testing tokenized RWAs and stablecoins. A proposal in India aims to legalize real estate tokenization.
Euro stablecoins have crossed the $1 billion mark. However, this is still just 0.006% of the Eurozone’s total supply.
Moody’s has initiated ratings on stablecoins. They’re assessing redemption risks.
Coinbase has launched USDC-backed custom stablecoins. These are tailored for brands and stock trading. Additionally, partnerships with Kalshi’s prediction markets exist.
World Liberty Financial is eyeing a 5% treasury. This supports USD1.
Mining Shifts and Global Plays
Hive is ramping up Bitcoin mining operations in Paraguay. Meanwhile, competitors pursue high-performance computing.
In the land of contrasts, Bhutan is embracing Bitcoin. Some are calling it a “love story.” However, Russia continues to limit itself. It allows ruble-only payments. Fully banning crypto continues.
The buzz around prediction markets is palpable. Robinhood’s CEO has praised Polymarket’s leadership. Meanwhile, innovative token sales offer new opportunities. For instance, the sale for Space offers leveraged bets on Solana.
Additionally, Coinbase’s Kalshi integration opens up new trading possibilities.
KuCoin has reiterated its partnership with Tomorrowland festivals. This cements its position. Specifically, as an exclusive crypto exchange through 2028.
Circle teams up with LianLian. Their goal is to streamline cross-border USDC payments.
Trading Considerations
Clients should remain vigilant. The CPI data may shape Bitcoin’s next movement. The bullish structure holds strong above $80,000. Yet, miner stress combined with geopolitical issues may cap upward potential.
Traders should contemplate several strategies. First, diversifying into RWAs makes sense. Second, ETFs offer opportunities. However, remain cautious amid prevailing fears.
Interestingly, whales seem to be accumulating meme coins. This happens during price dips.
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